FedEx and UPS have implemented numerous surcharges and fees on top of their shipping discounts, which are increasing the total parcel spend for shippers, particularly affecting their budgeting and financial planning. These additional costs are creating opportunities for alternative carriers that offer more transparent and stable pricing. PRIMO addresses these challenges by providing competitive pricing options that help customers avoid unexpected costs and maintain budget control.

• Volume-Based Surcharges: Shippers are now facing surcharges that depend on the volume of packages. For instance, UPS Ground and SurePost services have added surcharges ranging from 30 cents per package to $31.45 for larger packages.
• International Shipping Costs: FedEx has introduced surcharges of 10 to 45 cents per pound for parcels shipped from China, with minimum charges applied to both parcels and freight.
• Delivery Area Surcharges: Both FedEx and UPS have increased their delivery area surcharges, particularly in remote or extended ZIP codes. These surcharges can range from $3.95 to $7.70, with even higher costs for remote areas.

Strategies for Shippers

To navigate these rising costs, shippers are advised to:

1. Negotiate with Carriers: Engage in discussions with FedEx and UPS to potentially lower surcharge rates based on shipping volume and frequency.
2. Optimize Shipping Practices: Consolidate shipments and use data analytics to find the most cost-effective shipping methods.
3. Explore Alternatives: Consider other carriers or regional delivery services that might offer more competitive rates.

As the parcel delivery market continues to adapt, shippers must stay informed and proactive to manage these additional costs effectively.

Reference: www.supplychaindive.com